Bad News For Stock Market

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Oh just when we thought maybe that coast could be clear maybe the clouds could be moving away more dark clouds storm in on the stock market here in this short-term i gotta share some bad news with you guys okay first news story comes out just after the market closes today it is around donald trump president united states trump suggests us could slap 10% tariffs on

Iphones and a mact imported from china president donald trump has suggested he could place a 10% tariff on iphones and laptops imported from china in an interview with the wall street journal published monday pretty much after the market closed he also said it is highly highly unlikely that he would delay an increase in tariffs from the 10% to 25% that is going to

Start on january 1st just four days before a summit with chinese president g now first off here we know apple’s already having enough trouble trying to sell more units of iphones out there okay so you will op at 10% tariff on now $1000 iphone now goes to $1100 right or apple has to eat that cost apple it’s not gonna eat that cost they’re gonna up the price 10% okay

So also a thousand goes to 1,100 all right we said you know eventually as time goes on you keep pushing up these price points more and more sales are gonna slow and slow and slow right so what what that ends up meaning in the end is this hurts not only apple but it hurts a ton of stocks around apple this is so much bigger of a deal that oh this just hurts apple or

Something like that right well look at apple look at its weight on the s&p 500 apple is that most heavy weighted stock in the entire s&p 500 over three and a half percent of the weight and the s&p 500 is due in part of apple all right meaning if apple stock struggles if apple stock goes down guess what likely is gonna happen all the rest of stocks are

Gonna go down because stocks a lot of times trading baskets and if one stocks hurt in the market really bad a lot of times they’ll move down on nasa mao stocks on the flipside if i’m the one stocks real doing really good it can help the whole market go up and kind of push it up okay not just on the s&p 500 if we look at the nasdaq 100 as far as that a/c goes

It’s even scarier apple makes up over 11 percent of the weight of the nasdaq-100 all right so you could say okay you know 10% tariff let’s say you put a 10 percent tariff on iphones and macs and that slows that slow sales even more right and obviously that was something that would hurt apple and her apple stock overall okay so apple stock also starts to drop you

Might think oh that just hurts apple know what’s gonna hurt the entire stock market it’s gonna hurt the entire stock market in the short term if those tariffs go ahead and get put on which is very much a possibility it’s not just apple that gets hurt in all this okay it’s the massive gauntlet of other semiconductor companies that sell parts and different supplies

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To apple okay the skyworks solutions the microns the light the cuervo all of these type of companies texas instruments cirrus logic there’s a pretty much almost anybody that’s a big semiconductor company in the united states of america is you know apple is probably a big customer there’s all right so if apple gets hurt if apple sales go down guess who else’s sales

Go down almost all those semiconductor companies out there in the united states of america semiconductors is a massive industry in the stock market okay and if all the semiconductors continue to weaken and weaken it will also push down the entire stock market in all tech stocks in general okay so this is a massive massive deal here i would highly suggest they do

Not put a you know trump does not put a 10% tariff on the iphones and the macs and things like that you know i would 100% disagree with that i know his end goal there is let’s try to make apple rethink you know having you know basically all their phones made at the foxconn plants out in china let’s have them known and also pegatron let’s have them bring back that

Production to the united states of america i know that’s his thinking there but i’m just saying that’s that’s a really hard thing i think there would be a lot more damage done by 10% tariff on iphones and macs and things like that then actually good that will be done so in my personal opinion i don’t think they should i should go through with that and that’s not

The only bad thing okay also trump said he expects it to increase the tariffs on 200 billion dollars of chinese goods to 25% okay he said basically there’s likelihood there’s all that they’re not gonna get a deal done all right in four days when him and president xi and that meeting all right that was kind of you know it would have been nice to see something done

Out of that conference it would have been nice to see something done you know it didn’t have to be i don’t think there’s gonna be a mass resolution in the tariffs i don’t think the stock market believes there’s going to be a massive resolution in the tariff situation okay the markets priced in already that you know tariffs are kind of gonna be a thing for quite a

While right but it would have been nice to get something resolved there some type of medium ground something that united states and china could agree on tariff wise and you know shake hands and get something done there the market would feel so much better about that but the fact that the trade war is gonna probably rage on and nothing’s going to get done that freaks

A lot of people out and they’re freaks of stock market out and in general okay this is something that ends up bringing down stock market because the stock market like certainty what we have right now is uncertainty in the overall global economy right now and a lot of people are worried that global growth is going to slow massively in 2019 we’ve seen a lot of stuff

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Like this global growth will slow from here says new muricata miss all right the twenty five percent tariff is a massive massive deal in those chinese goods we don’t know how much that is going to end up hurting china’s does that take china – you know from growth to actually standstill economy to a negative economy what happens there we haven’t really you know

Tested something like sound them in a massive way in a long long time so this is all pretty much foreign territory here we’re gonna have to see all that all this works out i would have loved to see some type of compromise between the two countries come here over this next week but you know word choice like highly unlikely is definitely not a bullish sign out there

So we’ll see if anything does get done in the next four days but i would just say as of right now it doesn’t look good also this news came out not so much in necessarily bad news for the stock market overall general motors is going to kill the chevrolet volt the cruze the impala as americans ditch passenger cars general motors said monday that it planned to idle

Five factories in north america and cut more than 14,000 blue-collar and salary jobs in a bid to trim cost all right that is a big that’s a lot of jobs okay fourteen thousand just from one company to cut in north america right so that’s not a small amount okay trump doesn’t like this at all right he says they better damn well open a new plant there they’re playing

Around with the wrong person you know trump’s taking this personally like general motors is out to get trump or something like that like like trump i gotta be honest with you dude there’s a company that is just coming in the game and just killing general motors thing telling pretty much everybody that’s in passenger cars when you start to look at these numbers and

The scariest thing is this company’s just really starting to get up and rolling this year wait to see what happens that company’s name is tests okay and believe me they’re that company’s hiring a lot of employees are there are thousands of job openings at tesla right now you can go tesla careers calm and you can go to linkedin over 2,000 jobs on linkedin for tesla

Workers and whatnot okay so it’s not like general motors is out to get trump or something like that like just flat-out like general motors like who wants some of these cars that general motors is selling like i don’t know one soul out there who literally would want one of these general motors cars that general motors has right now general motors is finally waking

Up to the fact that oh my gosh electric cars coming tesla’s coming oh my gosh they’re gonna come in you know kick our ass and that’s the bottom line there okay now to recap number one even more apple uncertainty that’s not good for the stock market number two there’s probably gonna be no china us trade deal which makes more uncertainty in fear in the markets so in

The short term we’re probably going to continue this volatility in this kind of negative market we’re in right now because it’s just kind of like no good news if they you know the 10% tariff comes on apple if that is even a realistic possibility and that comes like that is such bad news and then you know with just this whole you know so china versus the us and if

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Nothing is done and no compromise can be made no handshakes can be done even though even on just something very small right not talking about their you know fix the whole deal not talking about fix old trade war just maybe a little compromise here and there if nothing can get done that just produces a lot more fear out there in the stock market which is not good

Know there are some people making some honey out there all right zillow so zillow was the main option play i saw out there that was a very good one zillow call options today my goodness guys hundreds of percent zillow call off rup today some of them up 600-700 over 2,000 percent today alone in zillow options some of these little options were up so you guys know

I have a cyber monday deal going right now i’m at options course 70% off if you want to learn how to trade options you can actually hedge positions with options a lot of people like to put out a lot of fear around options there are definitely dangerous ways you can play options very highly risky plays but they’re also strategies out there that can make it actually

Much less risky investing in the stock market through some of the option strategies i teach you many different strategies that can actually make you money whether the stock market is going down whether it’s going up whether it’s not moving there so if you want to check out that i’ll probably have it as a pin comment that’s the cyber monday deal stock mark is trying

To go up in the short term i think it’s going to be you know tough sledding from here just because if you’re looking at it in a short term perspective there’s so much drama right now between the china and us trade war and whatnot i think is going to be hard to get the u.s. stock markets to go up in the short term just the mere fact that all this drama is going on

And if the us and china can’t even come to some small resolution in the trade war situation like some small deal they’re like that’s just gonna hurt the market overall in the short term so but if your long term buyer and you’re buying stocks for the long term you know this will all wash over eventually and we’ll be clear and sailing again but the question is when

Is that going to be are we going to be waiting in a three months six months a year how long is this all going to take to shake out we shall see as time rolls on i want to hear from you guys down there in that comment section that’s always thank you for watching and have a great day

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Bad News For Stock Market By Financial Education

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